There has never been a better time to buy a home
October 29th, 2009 | by David Mueller |
There has never been a better time than now to buy a home. The prices are lower than ever and the Federal Reserve continues to lower the interest rates in an effort to stimulate the economy. Yet few people are buying because they are either afraid or intimidated by the aspect of “losing money.”
Everyone has heard that the residential real estate market has crashed and burned. It might even get worse before it gets better, although it is pretty much lower than it has been for decades. If you have been pondering whether or not to buy, but are afraid of the market, fear no more.
Buying a house is not like buying stock. Both are investments and both should be considered long term investments. A house generally appreciates in value each year along with inflation. So does stock. Bank accounts also appreciate in value due to interest, although today’s interest rates are lower than the rate of inflation. If you let it be, however, your bank account will be worth more money in 10 years than it is today, assuming you are getting some interest.
A house, however, is a different type of investment. Unlike stocks, bonds or bank accounts, a house is a necessity. We all need a place to live. And we have a choice between either renting a house or apartment from someone else or buying our own house.
